Chinese Drywall Update: Federal Court Presses Quick Action

Chinese Drywall Update: Federal Court Presses Quick
Action

U.S. District Court Judge Eldon Fallon, who is overseeing
combined Federal class action lawsuits relating to defective
Chinese-made drywall, made good last week on his stated
intention to maintain speedy process in the case. On Thursday,
September 24, Judge Fallon ordered attorneys for all parties to
act quickly to share documents and evidence in the cases,
reports the Miami Herald
("
Parties in drywall case urged to proceed quickly," by the
Associated Press).
At the same hearing, Judge Fallon dropped the gavel on one
tardy defendant: He held Chinese drywall maker Taishan Gypsum
Co., Ltd., in default for failing to respond to the lawsuit,
reported the Brandenton Herald
("
Judge rules against Chinese drywall maker," by Duane
Marsteller). The ruling will prevent Taishan from offering any
defense as the case proceeds; however, it is unclear how any
monetary damages could be recovered if Taishan refuses to
cooperate. The issue is likely to cloud U.S.-Chinese
international relations in coming years.
Judge Fallon has also pushed for quick inspections of homes
involved in the cases. On August 27, the judge issued a
detailed order for inspection of 30 representative houses
from Florida, Louisiana, Virginia, and the Carolinas. The
order, which prescribes sampling and inspection methods, as
well as record-keeping and reporting requirements, is posted on
the
court's
website. Some Florida homes have already been inspected
under the judge's orders, reports the Fort Myers News-Press
("
Estero community gets first drywall inspections," by Mary
Wozniak). Information on Fallon's management of the drywall
case is more readily available than in typical Federal
lawsuits: the court regularly updates its public web page on
the case.
Federal administrative agency action in the case, meanwhile,
has been less proactive than Judge Fallon's aggressive judicial
moves. Virginia Senator Mark Warner sent a letter to Consumer
Products Safety Commission Chairwoman, Inez Tenenbaum,
criticizing the agency for delay and missed deadlines, reported
the Hampton Roads Virginian-Pilot
("
Sen. Warner scolds federal agency studying Chinese
drywall," by Josh Brown). But CPSC spokesman Scott Wolfson
defended the agency, saying delays were caused by a broadening
and intensification of the commission's investigation, not by
lack of effort. And Tenenbaum assured legislators that the CPSC
would "vigorously pursue its investigation," promising to issue
a report in late October, reported the Miami Herald
("
U.S. to probe tainted drywall," by Lesley Clark). But the
release date for a study on air sampling of 50 homes has been
pushed back to November, reports the Sarasota Herald-Tribune,
and no date has been set for a report on fire and electrical
hazards in houses with Chinese drywall
("
Quicker pace urged in tackling drywall problems," by Aaron
Kessler).
Tenenbaum got a first-hand look at the problem on September
21, reports television station WINK, touring the Cape Coral,
Florida, home of Richard Kampf
("Head
of Consumer Product Safety Commission Visits Local Home With
Chinese Drywall"). "I think it's terrible that people have
to live in these conditions and have the health problems," said
Tenenbaum. "My heart goes out to the Kampfs and to the other
people." But Tenenbaum has asked lawmakers to be patient with
her agency, reports the Associated Press
("
CPSC pledges swift probe of Chinese drywall," by Jennifer
C. Kerr), calling the investigation "extremely complex," and
saying, "there probably will not be a quick fix."